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Advice needed buying a leasehold house

mcguinness
mcguinness Posts: 6 Forumite
in House buying, renting & selling
We are currently in the process of buying a property from plans (not even built yet) and part exchanging ours- we have had two valuations for ours and they are giving us an average of the two figures. So far they have offered us 10 grand off their property, carpets, turfed lawn and 4 grand of optional extra. I still think their property is overpriced and was wondering if you thought I would be pushing my luck if I tried to get stamp duty paid aswell? I got the 4 grand optional extras as I told them we were thinking of changing our mind (we have already paid to reserve the plot).

My other issue is, the house is leasehold and I wondered if anyone had experienced any problems with this type of house (the developer is Mcinerney homes?

Thanks,

Lindsey
«1

Comments

  • creditboy
    creditboy Posts: 61 Forumite
    I wouldnt buy leashold
  • Squish_21
    Squish_21 Posts: 676 Forumite
    My flat is leasehold. t hasnt caused me any problems whatsoever. Just make sure you have a very long lease.
    Squish
  • Richard_Webster
    Richard_Webster Posts: 7,646 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    the house is leasehold

    Is it in England/Wales?

    Very unusual for new build houses to be leasehold. How much is the ground rent? How long is the lease?
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
  • milliebear00001
    milliebear00001 Posts: 2,120 Forumite
    It's almost impossible to buy a house in my town that's not leasehold - don't think it causes too many probs - long leases and peppercorn groundrents though - these are the things to check.
  • mcguinness
    mcguinness Posts: 6 Forumite
    It's got a 999 year lease and groundrent is £2 a week. It's very rare in my town apart from on apartments so I can't understand why they've done it?!!
  • chickmug
    chickmug Posts: 3,279 Forumite
    mcguinness wrote: »
    It's got a 999 year lease and groundrent is £2 a week. It's very rare in my town apart from on apartments so I can't understand why they've done it?!!


    Ask your solicitor to see if they know any reason but 999 years lease if effectively a freehold as far as maintaining the value. That is providing there are no silly restrictions in the lease so you need to read it word for word. Do you have a copy of it yet?
    A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.
  • mcguinness
    mcguinness Posts: 6 Forumite
    chickmug wrote: »
    Ask your solicitor to see if they know any reason but 999 years lease if effectively a freehold as far as maintaining the value. That is providing there are no silly restrictions in the lease so you need to read it word for word. Do you have a copy of it yet?


    No, they've told us virtually nothing regarding the leasehold- We received our paperwork to sign yesterday and they want to exchange contracts by the 4th September but no mention has been made about the leasehold contract
  • cattie
    cattie Posts: 8,844 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Long leaseholds such as this on houses are known as virtual freeholds.

    Most solicitors will point out any issues to be aware of in the terms of the lease before exchange, so it could well be that there are no restrictions or covenants in the lease of this house. I'd give the solicitor a call just in case. I wouldn't attempt to try to read the lease yourself, as they can be full of legal jargon; leave it up to the solicitor as it's what you pay them for.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
  • chickmug
    chickmug Posts: 3,279 Forumite
    mcguinness wrote: »
    No, they've told us virtually nothing regarding the leasehold- We received our paperwork to sign yesterday and they want to exchange contracts by the 4th September but no mention has been made about the leasehold contract

    I fully respect the post from Cattie but would strongly urge that you take a look through the lease (as well as your solicitor) even if it is hard work. The reason is it can be one area which some solicitors are known to cut corners on.

    Look out for what you can, and can't, do especially those things that need the FHolder or any other intermediatry to approve.
    A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.
  • chickmug
    chickmug Posts: 3,279 Forumite
    Just thought is the lease document part of of the HIPs pack? Sometimes it is and sometimes it is not.
    A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.
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